Auto Club Joins The Credit Charge

January 03, 1993|By Knight-Ridder/Tribune.

The Automobile Club of Southern California has launched a MasterCard program for its 3.7 million members, offering classic and gold cards with no annual fee, a 14.9 percent interest rate and gifts for frequent users.

The cards, which will be issued through Pittsburgh-based Mellon Bank, aren't expected to have a big effect on the $190 billion credit-card industry because they will be available only to a relatively small customer base.

The gift program will credit customers one point for each $1 in purchases. Awards range from free maps and books for purchases of more than $2,500 to free Auto Club membership for purchases of $10,000. A club membership costs $38 annually.

The same amount of purchases on the GM Card, offered by General Motors Corp., is worth $500 off a new GM car.

Other perks of the Auto Club card include free traveler's checks, which must be purchased at Auto Club offices, and no fees for cash advances. Auto Club members also can roll over balances from other credit cards.